Question

Lawrence got a car loan from a bank, with the car as collateral. What kind of loan did he get?. . A. a secured loan. B. an unsecured loan. C. a fixed - rate loan

Answer 1

The kind of loan that Lawrence got from the bank can be termed as a secured loan. The reason behind such a conclusion is that the bank has the car as security. the correct option among all the options that are given in the question is the first option or option "A". I hope the answer has helped you.

Answer 2

Lawrence used his car as collateral so he obtained a secured loan (A). A secured loan is a loan that requires the borrower to put an asset on the line to make sure the debt is repaid. An unsecured loan is often based on a person’s credit rating, so it is determined on the borrower’s past history on paying off debt. Finally, a fixed-rate loan is just a loan that has set interest rates over the length of the loan.